India’s Gold Buyers: Now Even Poorer, Thanks to Tax Hike!

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With a flourish of bureaucratic grandeur, the Indian government has raised import duties on gold and silver to 15%, a move that will leave citizens clutching their pearls-or rather, their gold coins-with a mixture of despair and existential dread.

This fiscal masterstroke, a blend of 10% basic customs duty and 5% Agriculture Infrastructure Cess, will now make purchasing bullion feel like funding a small war. One might almost admire the ingenuity of combining agricultural development with the pursuit of glittering wealth.

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Import duty on gold and other precious metals has been increased, and the revised rates will come into effect from midnight tonight

– IANS (@ians_india) May 12, 2026

Buying Gold in India Just Got More Expensive

The Finance Ministry, ever the champion of policy somersaults, has reversed its July 2024 decision to slash duties. Prime Minister Narendra Modi, in a moment of paternalistic concern, had recently implored citizens to “pause” their gold purchases for a year-a plea that, one suspects, will be met with polite eye-rolling and a trip to the black market.

Jewelry stocks, predictably, wilted under the weight of this moral suasion. Titan, Senco Gold, and Kalyan Jewellers all tumbled on Monday, as if mourning the death of impulse buying. One wonders if shareholders will now be compensated in rhinestone.

India, the world’s second-largest gold consumer after China, remains oddly dependent on imports, despite its low domestic mining output. A situation akin to a man who buys his own oxygen tank, then complains when the price goes up.

In January and February 2026, India averaged 83 tonnes of monthly gold imports, a 56% surge from the previous year. The World Gold Council, ever the optimist, declared this “strong investment demand,” as if 82 tonnes of bars and coins could buy a small island nation.

“Total gold demand in Q1 rose 10% y/y to 151t, although volumes remained 9% below their long-term average. In value terms, demand nearly doubled, surging 99% y/y to a record INR2,275bn (US$25bn). Strong investment demand of 82t, led by bars, coins and ETFs, more than offset weaker jewellery volumes (66t), while industrial demand held steady (2t),” the report read.

India’s trade deficit, now a stately $330 billion, owes much of its girth to gold and silver imports. One imagines the finance minister scratching his head and whispering, “But it’s for the arts!”

Modi Pairs Public Appeal With Tariff Action

As if taxing gold weren’t enough, Modi has also advised Indians to curb fuel consumption, revive remote work, and reduce cooking oil usage. A veritable lifestyle revolution, one suspects, to be followed by a sudden interest in Jainism.

India is now openly treating the Hormuz disruption as a national economic risk. 🛢️

PM Modi has urged Indians to:

– cut petrol and diesel use
– revive WFH where possible
– shift more transport to EVs and rail
– postpone foreign travel and gold purchases
– reduce cooking oil…

– BeInCrypto (@beincrypto) May 11, 2026

The rupee, meanwhile, has been trampled underfoot by geopolitical tensions and the weight of Modi’s appeals. Reuters reports it as the worst-performing Asian currency this year, having shed 5% since February. One might almost pity it for its fragility-or laugh at its audacity in expecting stability.

Yesterday, it sank to a record low of 95.7375 against the dollar, a figure so pitiable it could make a banker weep-or at least adjust his collar.

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2026-05-13 10:28